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South African Journal of Economic and Management Sciences

On-line version ISSN 2222-3436
Print version ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.11 n.1 Pretoria Apr. 2008

 

ARTICLES

 

A study of customer commitment through the use of the conversion model in the South African motor vehicle industry

 

 

Nic S Terblanche

Dept of Business Management, University of Stellenbosch

 

 


ABSTRACT

Consumer markets have become increasingly competitive. Numerous measures to gauge and predict loyalty and commitment have been developed to assist management in this respect. The marketing literature contains many examples illustrating that longer relationships achieve customer retention, and have been rewarded with a considerable increase in customer net present value. Customer retention is undoubtedly a major contributor to profitability in the long term. Research shows that the most successful measures for achieving customer retention are customer delight, customer satisfaction and customer commitment. This study makes a closer exploration of customer commitment, as measured by the Conversion Model, in the South African motor vehicle industry. The findings highlight the commitment segments of the most popular motor vehicle brands in South Africa, as well the typical marketing strategies for managing the different commitment segments.

JEL: D12

 

 

“Full text available only in PDF format”

 

 

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